Is Flipping Mobile Homes Profitable 2024?

Flipping mobile houses is a common practice among real estate investors, but if you are new to this, then you might be eager to find out: Is Flipping Mobile Homes Profitable?

Mobile homes, which are also known as manufactured homes, offer a great opportunity for investors to buy, renovate, and sell properties for a higher price.

So keep on reading this guide if you wish to find out the A to Z of flipping houses in 2024, the risks associated with it, the profit potential, how to get started, etc.

Is Flipping Mobile Homes Profitable

What Does Flipping Mobile Homes Mean?

Flipping mobile homes means buying a mobile home for a lower price and then making the needed renovations and improvements in the house to sell it for a higher price in a short period of time.

The goal of flipping mobile homes is to make a tidy profit by adding value to the property through necessary renovations.

People who do this business are known as flippers, and this job requires flippers have good research, strategic thinking, and decision-making skills.


How Much Does it Cost to Buy a Mobile Home?

How Much Does it Cost to Buy a Mobile Home

According to U.S. News, the average cost to buy a brand-new mobile home in the U.S. was $125,200 in 2022.

But the average price of buying a used mobile home is between $10,000 and $50,000, which is a fraction of what people pay for a brand new unit.


Cost of Flipping Mobile Homes

While we are on the subject, you may be eager to find out how much it costs to flip mobile homes.

So, the cost of flipping a mobile home varies depending on many factors, such as the purchase price, market demand, renovation cost, etc.

However, on average, the total cost to flip a mobile home can be between $10,000 and $20,000.


Is Flipping Mobile Homes Profitable?

Flipping Mobile Homes Profitability

Yes, flipping mobile homes can be very profitable. You can buy an old mobile house for an average price of $30,000 and spend $15,000 on renovations on average. After calculating the purchase and renovation price, your total average purchase price would be $45,000. Now, you can add a good profit margin and sell this mobile home for $100,000+, making you a tidy profit of $55,000.

Note: The values that is used in the above example has been taken from the average renovation and purchase price of mobile houses.


Is Flipping Mobile Homes a Good Investment?

Flipping mobile homes can be a lucrative and sound investment; however, just like any other investment, there are risks associated with it, too.

However, for someone who is specifically looking to invest in the real estate market, flipping mobile homes can be a good option because of the low-cost acquisition and high profit margins.

Here are some more reasons as to why flipping homes can be a good investment:

1. Low Upfront Cost

The biggest advantage of flipping mobile homes is the low upfront cost compared to purchasing traditional family homes. As mentioned earlier, this could be quite appealing for people looking to invest in the real estate market with a modest investment budget.

In fact, according to the Manufactured Housing Institute, the average per-square-foot cost of acquiring a mobile home is just $72.21, compared to that of a standard brick-and-mortar home at $143.83. 

2. High Demand

Mobile homes are always in high demand because of their low purchase price and low rents. In fact, in 2023, 76% of all affordable and unsubsidized housing in the U.S. accounted for mobile homes.

Of course, you would also have to keep a competitive price to attract buyers, but overall, the demand for mobile homes in the U.S. is quite high.

3. Good ROI

The third biggest reason why investing in mobile homes is a good idea is their high ROI. You can buy a mobile home for quite a low price, and even the cost of renovation won’t cost that much.

Even after calculating both the expenses and your profit margin, you can secure a good return on investment.


How To Find Mobile Homes to Flip?

How To Find Mobile Homes to Flip

Here are some proven and effective ways to find mobile homes to flip:

1. Local Agents & Realtors

The easiest way to find mobile homes to flip is by connecting with your local agent or realtor and asking them to show you a mobile home for purchase.

Your local realtor will most likely be able to show you a mobile property that you can buy. However, this will require you to pay a commission to the realtor or the local agent.

2. Real Estate Auctions

Another great way to find mobile homes is by attending your local estate auctions or foreclosure sales.

Mobile homes are also included in these events, so keep an eye out and see any opportunity that may arise.

And since this does not involve a realtor, you won’t have to worry about paying commission. 

3. Online Listings

Another easy way to find a mobile house to flip without leaving your house is through online listings.

Today, there are many real estate online platforms such as Trulia, Homes, Redfin, etc., which you can use to find the property of your choice easily. 

4. Mobile Home Parks

You can visit mobile home parks in your area to see if there is any property worth investing in for sale.

You can speak with the park manager or residents who might have knowledge about the same. Any connection you make here might help you find a suitable property.

5. Cold Emails

If nothing works out for you, then you send cold emails to the owner of the mobile home that you think the owner might be willing to sell.

If you do not find the email, then you can consider knocking on their door directly. However, if the owner is not interested in selling their property, then this might seem rude. So make sure you are careful with this one.


How to Flip Mobile Homes?

How to Flip Mobile Homes

Here is a step-by-step guide on how to flip mobile homes:

1. Research & Familiarize Yourself

Before you even start hunting for mobile homes to flip, you first need to research the mobile home market in your area. Familiarize yourself with the buying and selling process involved in flipping mobile homes.

Find out your state rules and regulations or any other requirements that you will need to follow when flipping mobile homes.

2. Set a Budget

Once you familiarize yourself with the basics, now it’s time for you to move on to the next step, which is setting a budget.

Think of your budget to buy a mobile house, and don’t forget to add the renovation, repair, and marketing costs, etc., to it.

3. Start Looking for Properties

Now its time for you to actually start looking for a mobile property based on your budget. For this, you can either get in touch with your local realtor, use online platforms, go to auctions, etc.

You can also narrow down your search to specific locations, but that will make it difficult to find suitable properties.

4. Property Inspection

Once you have found a desirable property, now it’s time for you to inspect it for replacement or repairs of the roof, plumbing, HVAC, appliances, etc.

We suggest you hire a home inspector to get this done to avoid unpleasant surprises during the actual renovation process.

5. Negotiate the Purchase Price

If you find too many problems with the property during inspection, then you can use that information to negotiate the purchase price.

All you need to do is explain the problems that you’ve found and the money you would have to put in to fix them, and the seller might agree to a negotiation.

6. Repair & Renovate

Now that you have bought the property, its time for you to get it repaired and renovated to sell it in a reasonable time frame.

Focus on improving the appearance of the house and making it functional. Also, adhere to your local regulations while renovating to avoid problems later.

7. Price your Mobile Home

The standard formula to price your mobile home is to add the purchase price, renovation, and repair cost plus your desired profit margin. However, you can still consider the price of other mobile homes in your area.

If the mobile homes in your area have a higher price compared to what you have come up with, then you can increase your price as well to match the market price.

8. Advertising & Selling

Once you are ready to resell or flip your mobile home, it’s time for you to advertise it to find a buyer. For this, you can utilize social media, newspapers, online platforms, your local realtors, etc.

After you buy a potential buyer, be prepared to handle the negotiations smartly and carry out the paperwork.

If you are new to this, then we advise you to consult with a legal professional to get these legal formalities done smoothly.


How To Estimate Mobile Home Flipping Costs?


Challenges In Flipping Mobile Homes

Challenges In Flipping Mobile Homes

Here are some potential challenges that you may face while flipping mobile homes:

1. Financing

It is tougher to obtain financing for flipping mobile homes than for traditional real estate. This is because mobile homes may not qualify for traditional mortgages.

So, if you are short on cash, then you will have to figure out an alternate mode of financing, such as a personal loan.

2. Local Regulations

Mobile homes are generally subject to certain codes and regulations, and this could vary depending on the jurisdiction where you live.

So, familiarize yourself with local regulations such as zoning, inspections, and other permits to avoid legal troubles later.

3. Depreciation

Unlike traditional property, mobile homes depreciate in value once they leave the factory. This is because they are legally regarded as “personal property” and not “real property.”

However, it is also possible to appreciate the value of a mobile property by making renovations to it.

Some other reasons that may affect the value of a mobile property are:

  • Inflation rate
  • Housing market
  • The age of the mobile home
  • The neighborhood area
  • The initial price, etc.

4. Renovation Costs

Estimating the renovation costs accurately can be quite a challenge. You may come across a hidden issue with the property during the renovation process. Such unexpected expenses can eat up your profit margins.

So you must take care of such things, getting the mobile house home inspected by a professional could be good idea here.

5. Market Demand

Unexpected fluctuations in the market may affect your ability to sell or buy a mobile house quickly and for a desirable price.

Factors such as changing consumer preferences, local housing market trends, and economic conditions might affect market demand.

6. Lack of Good Location & Neighborhood

Mobile homes are not as common as traditional homes. So, finding a desirable mobile home that is close to main markets, grocery stores, etc., might be difficult.

And even if you find them, their price would be much higher because of the good location.

The neighborhood also plays an important role here. It is difficult to find a buyer for a mobile house where the crime rate is high and so on.

7. Holding Costs

Costs such as maintenance fees, utilities, rent, etc., accumulate when the mobile house is still on the market.

And long holding periods can decrease your profits. So, it is important to ensure that you resell the property in a reasonable timeframe.

8. Finding Good Deals

Lastly, finding a good mobile home could be challenging. For this, you require extensive research and networking to find deals, be it online, in mobile home parks, or in auctions.


Wrap Up

Now that we have come to the end of this article, you might have gotten the answer to your eager question: Is flipping mobile homes profitable?

Much like any other investment you make, flipping mobile homes also requires careful research, smart negotiation, and risk-taking capacity.

Since mobile homes are usually high in demand, it shouldn’t be a big problem for you to find a buyer and make a good profit.


FAQ’s

What is more profitable flipping houses or flipping mobile houses?

Flipping traditional houses is definitely more profitable as compared to flipping mobile houses. You can even make profits of up to $1,000,000 or more by flipping traditional houses, whereas the profit in flipping mobile homes is comparatively less.

Can I flip a Mobile Home?

Yes, you can flip a mobile home and make a tidy profit from it. However, you must do your research and carry out this thing carefully to get the best return.

Is flipping mobile homes worth it?

Yes, Flipping mobile homes can be worth it if you buy the property for a reasonable price, spend smartly on renovations to increase its value, and then sell it for a good profit margin.

Leave a Comment